BILL NUMBER: AB 648	CHAPTERED  10/10/99

	CHAPTER   1024
	FILED WITH SECRETARY OF STATE   OCTOBER 14, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 1, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	AMENDED IN SENATE   JULY 7, 1999
	AMENDED IN SENATE   MAY 17, 1999
	AMENDED IN ASSEMBLY   APRIL 13, 1999

INTRODUCED BY   Assembly Member Strickland
   (Coauthors:  Assembly Members Campbell, Cox, and McClintock)

                        FEBRUARY 23, 1999

   An act to amend Sections 1812.53, 1812.54, 1812.64, and 1812.69
of, and to repeal Section 1812.66 of, the Civil Code, relating to
dance studio lessons.

      e law without Governor's signature.  Filed with
Secretary of State October 14, 1999.)


	LEGISLATIVE COUNSEL'S DIGEST


   AB 648, Strickland.  Dance studio lessons.
   Existing law provides that a contract for dance studio lessons and
other services, as specified, may not exceed a total sum of $3,750,
and prohibits payments or financing by the buyer that exceed a period
of 2 years.  Existing law also requires such a contract to provide
for performance of the contract to begin within 12 months from the
date the contract is entered into, and that the contract may be
canceled within 180 days, as specified.
   This bill would delete the provisions limiting the monetary amount
of a contract for dance studio lessons and other services, would
require such a contract to provide that performance of the contract
will begin within 6 months, and would provide that the period of
payments or financing by the buyer may not exceed one year.
   The bill would revise the provisions regarding cancellation of the
contract by providing that the contract may be canceled at any time
by the student with written notice, as specified, and would require
the dance studio to calculate the student's pro rata refund, if any,
and to refund the money to the student within 10 days of receiving
the written cancellation notice.  However, the dance studio would be
authorized to deduct any moneys it is owed by the student for
services rendered prior to the cancellation from the amount owed on
the refund to the student, as specified.
   Existing law requires every dance studio to maintain a bond in a
specified amount and to file a copy of the bond with the Secretary of
State.  Existing law also provides, however, that a dance studio may
make a deposit in lieu of a bond, pursuant to specific provisions,
and authorizes the Secretary of State to enforce provisions governing
the filing and maintenance of bonds, and deposits in lieu thereof,
and to charge a filing fee, as specified.
   This bill would repeal the provisions providing for a deposit in
lieu of a bond, and would make other related changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1812.53 of the Civil Code is amended to read:
   1812.53.  (a) No contract for dance studio lessons and other
services shall require payments or financing by the buyer over a
period in excess of one year from the date the contract is entered
into, nor shall the term of any contract be measured by the life of
the buyer.  However, the lessons and other services to be rendered to
the buyer under the contract may extend over a period not to exceed
seven years from the date the contract is entered into.
   (b) All contracts for dance studio lessons and other services that
may be in effect between the same seller and the same buyer, the
terms of which overlap for any period, shall be considered as one
contract for the purposes of this title.
  SEC. 2.  Section 1812.54 of the Civil Code is amended to read:
   1812.54.  (a) Every contract for dance studio lessons and other
services shall provide that performance of the agreed-upon lessons
will begin within six months from the date the contract is entered
into.
   (b) A contract for dance studio lessons and other services may be
canceled by the student at any time provided he or she gives written
notice to the dance studio at the address specified in the contract.
When a contract for dance studio lessons and other services is
canceled the dance studio shall calculate the refund on the contract,
if any, on a pro rata basis.  The dance studio shall refund any
moneys owed to the student within 10 days of receiving the
cancellation notice, unless the student owes the dance studio money
for studio lessons or other services received prior to the
cancellation, in which case any moneys owed the dance studio shall be
deducted by the dance studio from the refund owed to the student and
the balance, if any, shall be refunded as specified above.  A dance
studio shall not charge a cancellation fee, or other fee, for
cancellation of the contract by the student.
   (c) Every contract for dance studio lessons and other services
shall contain a written statement of the hourly rate charged for each
type of lesson for which the student has contracted.  If the
contract includes dance studio lessons that are sold at different
per-hour rates, the contract shall contain separate hourly rates for
each different type of lesson sold.  All other services for which the
student has contracted that are not capable of a per-hour charge
shall be set forth in writing in specific terms.  The statement shall
be contained in the dance studio contract before the contract is
signed by the buyer.
   (d) Every dance studio subject to Sections 1812.64 and 1812.65
shall include in every contract for dance studio lessons or other
services a statement that the studio is bonded and that information
concerning the bond may be obtained by writing to the office of the
Secretary of State.
  SEC. 3.  Section 1812.64 of the Civil Code is amended to read:
   1812.64.  Every dance studio shall maintain a bond issued by a
surety company admitted to do business in this state.  The principal
sum of the bond shall be 25 percent of the dance studio's gross
income from the studio business in this state during the studio's
last fiscal year, except that the principal sum of the bond shall not
be less than twenty-five thousand dollars ($25,000) in the first or
any subsequent year of operation.
   A copy of the bond shall be filed with the Secretary of State,
together with a declaration under penalty of perjury signed by the
owner of the studio stating the dance studio's gross income from the
dance studio business in this state during the last fiscal year.  The
information contained in the declaration shall not be subject to
public inspection.  If the person in whose name the bond is issued
severs his or her relationship with the bonded dance studio, the new
owner shall, as a condition of doing business, notify the Secretary
of State of the change of ownership and of proof of compliance with
Sections 1812.64 and 1812.65.
  SEC. 4.  Section 1812.66 of the Civil Code is repealed.
  SEC. 5.  Section 1812.69 of the Civil Code is amended to read:
   1812.69.  (a) The Secretary of State shall enforce the provisions
of this title that govern the filing and maintenance of bonds.
   (b) The Secretary of State shall charge a filing fee not to exceed
the cost of filing the bond.
